Expert Analysis

• How Spirit's 1st Bankruptcy Sowed The Seeds Of Its Collapse

  

  Though Spirit Airlines' first Chapter 11 plan was broadly supported and moved swiftly through confirmation, it avoided using many of the Bankruptcy Code's most powerful operational tools in favor of a "business as usual" approach, which may have led to the airline's second bankruptcy and ultimate wind-down, say attorneys at Cleary.

• 3 Strategies To Reduce AI Sycophancy In Legal Work

  

  The tendency of generative artificial intelligence models to tell users what they want to hear can reinforce attorneys’ confirmation bias when testing the strength of arguments, and it can’t simply be prompted away — but a few practices can help mitigate it, says Michael Ott at Ice Miller.

• 2nd Circ. EFAA Ruling Shifts Employer Litigation Strategy

  

  In Diaz-Roa v. Hermes Law, the Second Circuit recently held that, under the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, employers can't carve out nonharassment claims and send them to arbitration, which has implications for discovery, litigation costs and resolution strategy in EFAA-covered disputes, say attorneys at Krevolin Horst.

• Balancing Independence And Costs In Ch. 11 Investigations

  

  A dispute in the Hughes Satellite Systems Chapter 11 case, pending in Texas bankruptcy court, raises a recurring issue in corporate restructurings: preserving the value of an independent corporate investigation and the investigative authority the Bankruptcy Code gives other constituencies, without making the estate pay twice for the same work, says attorney Kenneth Rosen.

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  Being In The Peace Corps Made Me A Better Lawyer

  

  When I served in the Peace Corps, the people of the West African village where I was stationed helped me acclimate to my new surroundings and enabled me to develop problem-solving, teamwork and empathy skills that have bolstered my legal practice far beyond the ability to offer technical advice, says Brian Bewley at McGuireWoods.

• Industry On The Rocks: 5 Options For Distressed Alcohol Cos.

  

  As the U.S. alcohol industry, long regarded as recession-resistant and reliably profitable, confronts an unprecedented convergence of headwinds, producers, distributors and retailers must assess their financial position and explore the range of available options, including out-of-court restructuring, bankruptcy protection and strategic transactions, say attorneys at Adams & Reese.

• Bankruptcy Deadlines, Concessions Can Decide Lien Priority

  

  The Fifth Circuit's recent decision in Adler v. Energy Debt Holdings warns buyers of secured claims to watch for binding concessions in earlier proceedings and court-imposed lien challenge deadlines, says Jennifer Maleski at Dilworth Paxson.

• What Lawyers Should Know Before Accepting Crypto Payment

  

  As clients increasingly request to pay legal fees, retainers and escrow funds using cryptocurrency, lawyers should consider how only a handful of state bar authorities have addressed the issue with varying ethics opinions, as well as the related questions that no authority has yet answered, says attorney Felix Shipkevich.

• Data Sale In Spirit Bankruptcy Raises Novel Privacy Risks

  

  Spirit Airlines' planned sale of deidentified business data to Google for artificial intelligence training exposes gaps in the Bankruptcy Code's privacy guardrails, particularly for employee information, say attorneys at Patterson Belknap.

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  Mentalism Makes Me A Better Lawyer

  

  Convincing strangers I can read their minds may seem like an unusual second career for a legal practitioner, but both disciplines share several important requirements, including trust and preparation, says Warren Biro at Manatt.

• Why And How To Build A Neurodiversity-Informed Practice

  

  By better understanding neurodiversity and implementing simple accommodations for clients with autism, ADHD or learning differences, attorneys can build stronger relationships with those who may otherwise struggle to obtain and benefit from legal services, while developing good habits that will benefit everyone they represent, says Ting Cheung at Sanford Heisler.

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  Illinois Banking Brief: All The Notable Legal Updates In Q3

  

  Recent banking developments in Illinois include significant new consumer protection legislation, three meaningful Seventh Circuit decisions, and a high-profile constitutional challenge to the state's new digital asset tax, say attorneys at Barnes & Thornburg.

• LIV Golf Ch. 11 Tests Limits Of Reorganizing Around Talent

  

  In LIV Golf's recent Chapter 11 filing, players are the core enterprise value of the business and the intended majority common owners of the reorganized league, making the case a restructuring reference point for any enterprise whose core value rests on individuals rather than assets, say attorneys at Jones Walker.

• Foreclosure May Not Be The Fix For Distressed Office Loans

  

  Recently declining office values show that distressed borrowers and lenders should consider negotiated workouts, tax planning and value-preserving leasing strategies as refinancing gaps and special-servicing constraints make foreclosure an increasingly costly last resort, says Howard Koh at Meister Seelig.

• Testing AI's Promise For Large-Scale Document Review

  

  Our document-review comparison of attorneys' responsiveness and issue coding decisions versus predictions generated by artificial intelligence across 1,600 documents suggests that these tools can offer a reasonable and reliable basis for improved discovery workflows, provided lawyers understand where guardrails are needed, say attorneys at Redgrave.